Irish exports could be seriously hit as an indirect result of Tuesday's terrorist attacks in New York and Washington, the Irish Exporters' Association warned yesterday.

According to the association's chief executive, Mr John Whelan, US business confidence in overseas investment could decline following the assaults.

He contended that this would result in American multinationals, organisations which currently account for more than 80 per cent of Irish exports to the US, moving closer to home.

Mr Whelan said such a policy shift would mean that goods worth £11.2 billion (€14.22 billion) which Irish-based companies exported to the US last year could suffer dramatically.

Such exports are already under threat due to a creeping global slowdown.